Your Normal Pension Age is the age when you should apply for your full benefits from the scheme. You do not have to apply at this age, you can apply early, and you can delay your claim.
If you seek early retirement, then you will receive an Actuarily Adjusted Benefit (AAB). This is a reduced amount based on how early you receive your benefits.
Do I have to claim my pension?
You can delay your pension claim too. Then, when you do make your claim, your benefits will be backdated to your last day of service or when you reached your NPA, whichever is later. You will receive this backdated money as a lump sum, which might sound appealing. However, this money will be subject to tax. This is different from the end of service lump sum, up to 25% of your total pension accrued, which is tax-free.
If you have benefits in both the final salary and the career average scheme, then you can claim both at the same time. You need to be out of service to claim both. However, if you request your career average pension at the same time as your final salary scheme, it will be reduced to account for you taking it earlier than your NPA.
If you claim your career average pension and you have outstanding final salary benefits, you will be expected to claim both.
Where can I find my NPA?
If you need to learn about your NPA, you can find this on My Pensions Online. If you are ready to apply, you can also fill in online forms on the Teachers’ Pension Scheme website.
You may be unsure of what is best for you. If this is true, then you can speak to an independent financial advisor. This advisor will be able to guide you through your options.
The content in this article was correct on 18th December 2019. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on pensions for teachers and non-teachers. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.